The number of existing and new homes for sale is moving closer to a balanced market, a positive environment for buyers who have been waiting for the Sarasota Real Estate Market to stabilize. A balanced market is defined as having between 5-7 months of available inventory. Pent-up demand, especially in the mid-market where most transactions take place, should be eased in the months ahead.
More available inventory is relieving upward pressure on pricing, and with signals of cuts in Federal interest rates expected to bring mortgage rates down along with them, those seeking first-time home purchases and those requiring borrowed funds to buy a home could finally make a move.
While reports of the increase in homes for sale may sound concerning, the reality is that the lack of available homes and condos across the U.S. has been troublesome for several years. Below is a chart developed by the National Association of Home Builders that shows the tipping of balance back toward historic norms where both buyers and sellers have more opportunity to achieve their real estate goals.
July’s home sales in the Sarasota Real Estate Market grew, while median prices eased below this same month last year. In addition to helping to slow home price appreciation, more inventory is increasing the period from listing to sale allowing buyers the luxury of time to make their decisions, as well as more choices and negotiating power.
One of the more interesting trends in the July data was the considerable growth in the price tier where most starter homes are purchased. Homes sold in Sarasota under $300,000 nearly doubled and condos/apartments increased just under 15%. Inventory of available properties in the same tier almost tripled! While interest rates may still be cumbersome for those looking to purchase in that price point, the median down payment for a home under $300,000 in 2023 was just 15% giving hope to many looking to own a home.
In the next tier of pricing, $300-600,000, inventory grew by 70% as many in that group look to get on with their new home goals. At the luxury level over $1 million the number of homes available also grew, adding 30% more properties than prior year.
As discussion and expectations of the Fed lowering interest rates is well reported, experts are anticipating a slow process with the prospect of seeing mortgage rates under 6% likely still more than a year away. This may keep some pent-up demand unmet until measurable cuts are made. Even when rates do fall, there is no expectation of a flood of buyers, but it will help to get the market moving, which will drive more competition again for buyers.
It would be my privilege to work with you, your family, and friends in acquiring or selling your property. Partnering with an agent who understands our nuanced local conditions, especially as we move toward a balanced market and how it will affect your decisions and opportunities is critical.
Having served clients in The Sarasota Real Estate Market for 40 years and carefully analyzing our business conditions, I have developed essential insight to assist both buyers and sellers in achieving their objectives. An understanding of the realities, the ability to evaluate and guide client expectations, and expert management in negotiating the purchase or sale of a home or condo, I ensure that your goals are realized.
Below is a snapshot of the Florida Association of Realtors July 2024 data showing
Sarasota’s homes and condos selling for over $1 Million:
And now for my statistical report on the May Sarasota Real Estate Market activity:
Sales
- Total market dollar volume was $589 million, almost identical to last July.
- The number of properties sold in July was 927, which was 28 more than a year ago. The monthly average of sold properties this year is 1,014. The monthly average in 2023 was 953, in 2022 it was 1,004 and in 2021 1,369.
- Florida’s single-family sales increased 5.2%, and condo sales were 1.2% below last year.
- U.S. sales of single-family homes declined 1.4% and condos fell 11.6%.
- Of the closed sales in July, 115 were for over $1,000,000, an increase of 13% over prior year. In 2023 Sarasota averaged 126 sales per month over $1 million, in 2022 the average was 111 and in 2021 128.
- Florida’s homes sold for more than $1 million were 12.2% higher than July 2023 and condos closed at over $1 million rose 8.4%.
- 840 listings went to a pending contract in July, a decrease of 52 transactions from a year ago. Year to date there has been an average of 1,034 pending sales per month. There was an average of 1,159 monthly pending transactions in 2023, 968 per month in 2022 and 1,347 in 2021.
- Florida’s single-family pending sales decreased 0.6% and condominiums fell 10.4% compared to last year.
- U.S. pending sales in July were 4.6% behind a year ago.
Prices
- Single-family homes were sold at a median price of $470,000. The average monthly median price for houses sold is $513,000 this year. The average monthly median price for 2023 was $510,000, in 2022 it was $493,000 and in 2021 $394,000.
- In July, Florida median price for single-family homes was $416,900, an increase of just 0.5% over last year.
- The national median price for existing homes grew 4.2% to $428,500.
- The condominium median sale price in Sarasota was $365,000. The average monthly median price for condos sold is $387,000 this year. The average monthly median price for condominiums sold in 2023 was $387,400, in 2022 $383,000 and in 2021 $317,000.
- The median price for a Florida condominium last month was $315,000, a 1.3% decrease from July 2023.
- U.S. median condominium price grew to $367,500, 2.7% higher than last year.
- Sarasota houses sold on average for $679.000 for the month. The year-to-date monthly average is $743,000. The annual monthly average was $695,000 in 2023, in 2022 $683,000 and 2021 $573,000.
- Condominiums sold for an average price of $538,000 last month. The year-to-date monthly average is $616,000. The annual monthly average was $622,500 in 2023, in 2022 $563,000 and in 2021 it was $527,000.
Inventory
- Currently there are 4,845 properties for sale in Sarasota. At the beginning of this year there were 4,426 listings for sale, 2,431 in 2023, and 829 in 2022.
- The Sarasota market had 1,1,53 new listings in the past month. The market averaged 1,496 new listings monthly this year, in 2023 there were an average of 1,332, 904 in 2022 and in 2021 it was 1,321.
- Current inventory results in 4.8 months of single-family homes for sale in Sarasota and 5.7 months’ supply of condominiums.
- Florida currently has 4.6 months of single-family inventory and 7.4 month’s supply of condominiums. Inventory of properties selling for over $1 million have increased about 50% over last year.
- U.S. inventory of existing single-family homes has grown 19.4% and condominium inventory is 28.6% higher.
